Yangtze Optical Fibre and Cable (06869.HK) Hot Stock Analysis

Yangtze Optical Fibre and Cable (06869.HK/601869.SS) has recently become a market focus, with the core driver being the

[1]. As a global leader in the optical fiber and cable sector, the company has ranked first in global sales for its three main businesses (optical fiber preforms, optical fibers, and optical cables) for nine consecutive years [1]. Its long-term technical accumulation and industry position make it a core beneficiary of the computing infrastructure dividend.

From the stock price performance perspective, the A-share (601869.SS) has risen 323.21% year-to-date and exceeded a market capitalization of 100 billion yuan after “four days with three limit-ups” in December 2025 [1]; the H-share (06869.HK) closed at HK$54.600 on December 30 with a 5.13% drop that day, but recorded a net inflow of HK$416 million from Hong Kong Stock Connect funds on the same day [0], reflecting that southbound funds still maintain a positive attitude towards it. Additionally, the company completed a HK$2.258 billion H-share placement in December, which was oversubscribed multiple times, further demonstrating market recognition of its investment value [2].

1. Linkage Effect Between Computing Infrastructure and Optical Communication
   : The computing infrastructure boom is the core logic of this round of market行情, and optical communication, as the basic carrier of computing networks, has seen sustained demand growth. YOFC’s leading position in the industry allows it to benefit first from this trend [1].
2. Divergent Performance in Two Markets
   : The A-share shows high valuation characteristics due to computing theme speculation (a rolling P/E ratio of about 169 times [1]), while the H-share has relatively rational valuation but is still affected by A-share sentiment. The decline on December 30 may be related to short-term profit-taking, but the continuous inflow of Hong Kong Stock Connect funds indicates long-term confidence [0].
3. Game Between Market Sentiment and Valuation
   : Although the company’s valuation is at a historical high (A-share P/E ratio of 158.49 times [0]), funds continue to chase it, reflecting the market’s optimistic expectations for the long-term prospects of computing infrastructure and also showing an increase in the market’s valuation tolerance for growth stocks.

:

• Sustained升温 of computing infrastructure demand, with clear growth prospects for the optical communication industry [1];
• The company’s global leading position and technical advantages are expected to continue to benefit from industry expansion.

:

• Overvaluation Risk
  : The A-share rolling P/E ratio reaches 158.49 times, and although the H-share valuation is lower, attention should still be paid to valuation bubbles [0];
• Shareholder Reduction Risk
  : Shareholder Changjiang Communications completed the reduction of 1.1 million A-shares on December 26 [3], accounting for only 0.14% of the total shares, but subsequent reduction plans need to be monitored;
• Industry Competition Risk
  : The optical communication industry has high concentration, so attention should be paid to market demand fluctuations and the strategic impact of competitors.

As a global optical communication leader, Yangtze Optical Fibre and Cable has seen a significant market rally benefiting from the computing infrastructure boom. Its A-share has risen more than 300% year-to-date and exceeded a 100 billion yuan market capitalization, while its H-share has received large net inflows from Hong Kong Stock Connect funds. The company’s industry position, technical accumulation, and financing subscription situation all show market confidence, but risks such as high valuation and shareholder reductions also need attention. Investors should make comprehensive judgments based on their own risk tolerance, combined with industry trends and company fundamentals.